AirAsia’s Q3 net profit soars 81%

> Group declares special dividend of 40 sen per share for financial ending Dec 31 2018

PETALING JAYA: AirAsia Group Bhd’s net profit for the third quarter ended Sept 30, 2018 rose 81.24% to RM915.88 million from RM505.33 million a year ago due to a one-off gain on the sale of Expedia and reversal of deferred tax liabilities arising from the disposals of aircraft.

In August, the group had disposed of its remaining 25% stake in online travel agency AAE Travel Pte Ltd to Expedia Inc for US$60 million (about RM240 million), resulting in a gain on disposal of RM230.4 million.

Operating profit for the quarter was lower at RM253 million compared with RM494 million a year ago, mainly due to the increase in fuel expenses. The total fuel consumed during the quarter rose 5% to 2.66 million barrels from 2.54 million barrels a year ago.

Average fuel price during the quarter was 50% higher at US$95 per barrel from US$63 per barrel a year ago. Excluding fuel expenses, costs were fairly well controlled, showing a reduction of 2% of CASK ex-fuel.

Revenue for the quarter rose 6.58% to RM2.61 billion from RM2.45 billion a year ago due to a 9% increase in total passengers carried to 10.80 million from 9.89 million a year ago.

Overall unit passenger revenue rose 1% to RM222 from RM221 a year ago, as a result of average fare increase of 3% to RM177 from RM172 a year ago. Capacity grew 16% to 13.23 million from 11.40 million a year ago while seat load factor fell to 82% from 87% a year ago.

For the nine months ended Sept 30, 2018, net profit rose 90.90% to RM2.42 billion from RM1.27 billion a year ago while revenue rose 10.30% to RM7.78 billion from RM7.05 billion a year ago

The group has declared a special dividend of 40 sen per share for the financial year ending Dec 31, 2018 amounting to RM1.34 billion, payable on Dec 28, 2018.

AirAsia said the operating environment has improved in the fourth quarter of 2018 compared with the third quarter. Combined with the upcoming year-end holiday season, the group said load factor is holding strong while overall average fares have increased year-on-year.

“For the full year, we are on track to achieve a group load factor target of 85%. We will continue to emphasise our One AirAsia initiatives to further reduce costs, while improving the overall operational efficiencies and actively monitor each route’s profitability,” it said.